Menü Schließen

BTC At Risk of Breaking Below $16.4K Support, Eyes on 23.6% Fib Level

• Bitcoin (BTC) was trading at $16,587, potentially headed for a break below the support at $16,442.38.
• Technical indicators and on-chain metrics suggest that BTC could drop lower and retest $16,765 as a short-sale target.
• A break out above the 23.6% Fib level of $16,766.50 would invalidate the bias and could push the price higher.

Bitcoin (BTC) has been stuck in a sideways range for over 10 days, trading between $16,920 and $16,450. The lack of volatility and volume has stalled the entire crypto market. At press time, the king coin was trading at $16,587, potentially headed for a break below the support at $16,442.38.

The price of BTC rallied after the FOMC meeting and reached a high of $18.4K, up about 9%. However, after that, the price correction cleared all the gains and dropped lower. There have been four major price pullbacks since the $18.4K high, the first one settling at $16,627.07 and the second one settling at $16,442.38. The attempt to recover the price was rejected at $16,918.44, which has now become a bearish order block, influencing the third and fourth phases of correction.

Technical indicators and on-chain metrics suggest that BTC could drop lower and retest $16,765 as a short-sale target. The On-Balance Volume (OBV) was negative, indicating that the asset was sold more than it was bought, suggesting high selling pressure. In addition, the Relative Strength Index (RSI) has moved away from its mean and declined, indicating that buying pressure eased.

A break out above the 23.6% Fib level of $16,766.50 would invalidate the bias and could push the price higher. The king coin is currently in a slight upward momentum and it will be interesting to see whether the support at $16,442.38 will hold or if it will break out and head lower. If this happens, traders should be aware of the potential short-sale targets at $16,765 and keep an eye on the 23.6% Fib level, as a breakout above this level could send the price higher.